The Beal Business Advisor

January 2016

Contact Number: 204-478-7266

In This Issue

Closed Transaction
Buying a Business - Machinery and Equipment
Selling your Business - Transaction/Sell Your Business
Question of the Month - Why Should I have Sale Forecasts for my Business?

Closed Transaction

Convenience Store Business

The Undersigned Has Acted as an

Advisor to the Vendor

Beal Consultants

Steven Beal, MBA, CPA, CGA, CFA, CBV, CBI

204-478-7266 ext. 109

www.bealconsultants.ca

Machinery and Equipment

Last month we discussed real estate, this month we want to discuss machinery and equipment.

All machinery and equipment required to run the business is included in the sale. Equipment should be in working condition on day of sale, but there is typically no guarantee beyond then. Key issues to understand are:

Owned vs. leased?
Condition and age
Maintenance history?

Next month we will discuss accounts payable and other accrued liabilities.

In the meantime, if you would like more information on buying a business, contact us at 204-478-7266x110.

Transition/Sell your Business

This month we will focus on a transactional issue - reducing taxes via an estate freeze. An estate freeze is a useful tool in transitioning a business to the next generation. It is typically used within a family transition, but the concepts could apply to an arm's length transaction.

An estate freeze is a basic share exchange. If you own a business worth a million, and you want to transfer it to your children, you can convert your common shares into preferred shares worth one million (less a dollar) and then sell 100% common ownership to your child(ren) for one dollar. This accomplishes a number of objectives:

In certain situations (ask your accountant), you can crystallize your gain for income tax purposes. In this situation, depending on the tax cost base of your shares, you could claim up to $800,000 each in capital gains, using your lifetime exemption.
Ownership of the future growth of the company will pass to the next generation.
The preferred shares could pay a specific dividend, giving you retirement income.

This is a complex transaction; and there is risk in executing it. Consult a competent tax accountant, lawyer and business consultant before attempting to do it! Next month: Why choosing a successor now can help you maximize the value of your business.

If you are interested in discussing succession planning for your business, contact us at 204-478-7266x110.

Current Businesses for Sale

Winnipeg Auto Body Shop (NEW)

Industrial Land & Building for Sale - Suitable for Automotive (NEW)

Cleaning Services Business (NEW)

Manufacturing Business (NEW)

Winnipeg Electrical Contracting Business (NEW)

Transport & Event Planner

BNI Manitoba Franchise

Pizza and Chicken Restaurant

Central Winnipeg Convenience Store

Winnipeg Used Book Store

Seasonal Product Manufacturer/Contractor

Women's Clothing Store

The UPS Store - Winnipeg Location

Coffee Shop Franchise South of Downtown

Rural Chicken Franchise Restaurant

Home Renovation Business

Profitable Resort

Winnipeg Auto Repair Shop

Farm Parts & Recycling Business

Auto Parts, Service and Recycling Business

Winnipeg Construction Company - Conditionally Sold

Construction Supply Distribution Opportunity

Profitable Winnipeg Automotive Services Center

Convenience Store South of Downtown

Rural Automotive Repair Shop Location

Carman Property

Electrical Contracting Business

Fitness & Weight Loss Facility

Winnipeg Tailor Business

Franchised Food Retailer - Franchise

Franchise - Tanning Studio

Small Town Dollar Store

Thompson Hotel and Restaurant

WOW 1 Day Painting Franchise

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

To review any of these business profiles, please click here .

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We do not advertise all of our listings to the public.

If you have a specific type of business in mind,

please call 204-478-7266 x110 to inquire!

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Quick Links

Beal Consultants Website

Quote of the Month

"Strive not to be a success, but rather to be of value."

Albert Einstein

Why should I have Sale Forecasts for my Business?

Creating sales forecasts is a difficult area of management, and often sales projection turn out to be wrong, so what is the point of making a sales forecast? A sales forecast is important start to any new business and any already existing business. All well established businesses should have sales forecasts and sales forecasts should be an integral part of all small business owners' business planning.

Reasons for Undertaking Sales Forecasts

Businesses are forced to look well ahead in order to plan their investments, launch new products, and decide when to close or withdraw products and so on. The sales forecasting process is a critical one for most businesses, virtually every company needs to generate forecasts of their short to medium term sales. Key decisions that are derived from a sales forecast include:

Resources required to make decisions and reach sales targets in terms of both human, financial, and material resources

Promotional mix and marketing decisions

Production capacity and targets

Purchasing and inventory required to meet demand

Having a well thought out and accurately projected sale forecast allows you to forecast demand for your products or services, as well as account for the highs and lows in business cycles. This helps to ensure you have enough inventories on hand, as well as allows you to effectively monitor cash flow as well.

Call us at 204.478.7266 x110 if you would like us to help you write a business plan.

About Us...

Beal Business Growth Consultants, Inc. helps owners of small and medium-sized businesses to buy, sell, value, and grow their businesses. We also work with individuals who are looking to buy or start a business or franchise.

Call us at (204) 478-7266 x110 to book a free, initial 30-minute consultation to explore how we can help you buy, sell, value or improve your business.

Legal

Copyright 2016 by Steven Beal, Beal Business Growth Consultants, Inc. The information herein is not complete and is intended only to provide guidelines to supplement counsel the reader receives from a qualified professional. It is distributed with the understanding that the author is not rendering legal, accounting or tax advice or opinions on specific facts or matters, and accordingly, assumes no liability in connection with its use.

Published by Beal Business Growth Consultants, Inc.